There are quite a few disadvantages of taking out an IVA and these should be considered befor eyou decide whether or not to go ahead.

You may be required to release some of the equity in your home. This is not always a requirement but if it is seen that it would be fair to your creditors that you do this then it may be part of the repayment agreement.

You need to have at least £12,000 worth of debt and you will need to be able to afford at least £180 a month in repayments.

While you are in the process of paying back your debts through an IVA you will not be able to borrow any more money. This means that if you really want to buy something but you cannot afford it then you will not be able to do so. This could be a good thing really as it may teach you about saving and about waiting for things until you have the money to pay for them.

You will need to keep paying back the money for a five year period. This means that you will not be able to have any treats. However, it may be possible for you to arrange a payment holiday if you urgently need to buy something but it will mean that the period of repayment will be extended.
 
You credit rating will be damaged as you will not be able to borrow anything for five years but it will be easier than if you declared bankruptcy. Abut a year after paying back your IVA, if you are sensible with money, you should find your rating beginning to improve.

The repayment period is longer than bankruptcy, taking five years rather than three but your credit rating is not so badly damaged. You will also pay back more of the money that you owe with an IVA.